Save Search

Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Family Law Legislation Amendment (Superannuation) (Consequential Provisions) Bill 2001

Bill home page  


Download WordDownload Word


Download PDFDownload PDF

 

 

 

 

1998-1999-2000-2001

 

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

 

HOUSE OF REPRESENTATIVES

 

 

 

 

 

FAMILY LAW LEGISLATION AMENDMENT (SUPERANNUATION)  (CONSEQUENTIAL PROVISIONS) BILL 2001

 

 

 

 

 

SUPPLEMENTARY EXPLANATORY MEMORANDUM

 

 

 

Amendments to be moved on behalf of the Government

 

 

 

(Circulated by authority of the Attorney-General,

the Honourable Daryl Williams AM QC MP)

 

 

 



AMENDMENTS OF THE FAMILY LAW LEGISLATION AMENDMENT (SUPERANNUATION) (CONSEQUENTIAL PROVISIONS) BILL 2001

 

OUTLINE OF AMENDMENTS

The Family Law Amendment (Superannuation) (Consequential Provisions) Bill 2001 (“the Bill”) will:

·         amend tax legislation; and

·         make other legislative amendments relevant to the Commissioner of Taxation’s responsibilities for superannuation related matters

consequential on the enactment of new Part VIIIB of the Family Law Act 1975 (“the Family Law Act”) providing for the division of superannuation on marriage breakdown.

Four Government amendments to the Bill are proposed to:

·         widen a regulation making power in new Part VIIIB of the Family Law Act to prescribe a payment in respect of a superannuation interest of the spouse as a payment that is not splittable;

·         re-draw the provision in the Bill providing for capital gains tax (CGT) roll-over relief for a transfer of an asset between two self managed superannuation funds to give effect to a split of a superannuation interest.

FINANCIAL IMPACT STATEMENT

The proposed amendments do not have any financial impact.

 



NOTES ON AMENDMENTS

AMENDMENTS TO THE BILL

Amendment 1 - Section 90ME(2)

Amendment 1 will repeal subsection 90ME(2) of the Family Law Act 1975 and replace it with a provision to widen the scope of the regulation making power to prescribe a payment in respect of a superannuation interest of a spouse as a payment that is not splittable.  The new provision will ensure that the power will be able to be used to prescribe such a payment to be not splittable in relation to a particular payment split. 

Amendment 2 - Subsection 126-140(2)

Amendment 2 will replace proposed subsection 126-140(2) of the Income Tax Assessment Act 1997 in Item 19 of Schedule 1 of the Bill.  Proposed section 126-140 allows CGT roll-over relief if an asset is transferred from a small superannuation fund to another small superannuation fund for the benefit of a non-member spouse to give effect to a payment split.  Amended subsection 126-140(2) ensures that assets transferred between small superannuation funds to give effect to payment splits under the Superannuation Industry (Supervision) Regulations qualify for CGT roll-over relief.

Amendment 3 - Subsection 126-140(6)

Amendment 3 will omit proposed subsection 126-140(6) of the Income Tax Assessment Act 1997 in Item 19 of Schedule 1 of the Bill.  That subsection is no longer required as a consequence of Amendment 2.

Amendment 4 - Subsection 995-1(1)

Amendment 4 will omit the proposed definition of ‘interest split’ in subsection 995-1(1) of the Income Tax Assessment Act 1997 in Item 20 of Schedule 1 of the Bill.  That definition is no longer required as a consequence of Amendment 2.